Company registration number 09919243 (England and Wales)
QUAI INVESTMENT SERVICES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
QUAI INVESTMENT SERVICES LIMITED
COMPANY INFORMATION
Directors
A E Webb
K Stimson
(Appointed 1 May 2023)
Company number
09919243
Registered office
16 Tesla Court
Innovation Way
Lynchwood
Peterborough
PE2 6FL
Auditor
Price Bailey LLP
36 Tyndall Court
Commerce Road
Lynchwood
Peterborough
PE2 6LR
Business address
16 Tesla Court
Innovation Way
Lynchwood
Peterborough
PE2 6FL
QUAI INVESTMENT SERVICES LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Profit and loss account
9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 18
QUAI INVESTMENT SERVICES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 1 -
The directors present the strategic report for the year ended 31 October 2023.
Review of the business
Quai Investment Services Limited began offering regulated services in February 2022 and migrated a book of business in March 2023. The Company now has 7 clients and a strong pipeline of both contracted and prospective new business for the 2023/24 Financial Year.
Principal risks and uncertainties
Liquidity Risk – there is a risk that cashflow is insufficient to meet our ongoing overheads. The company holds deposits with banks and on call from its parent. Should further funding be required the parent would provide this support. Cashflow plans and financial forecasts are prepared and reviewed by the board.
Regulatory Risk – the company operates in a highly regulated environment and there is risk associated with the activities undertaken in the provision of savings and investment products, in particular in the governance of the products, the documentation supporting the products and in monitoring activities in relation to the distributor of the products and the underlying retail customers.
To mitigate this risk the company employs suitably qualified senior managers with wide-ranging financial sector expertise in other regulated businesses. In addition third party systems and third party consulting expertise is utilised as and when required. Regulatory change is routinely monitored and planned for where it impacts the business.
Operational Risk – The Company outsources the administration of its products and services to Quai Administration Services Limited (QASL), a group company. An Outsource Agreement and Service Level Agreement are in place. The Company ensures adequate oversight of the services performed by QASL in line with its regulatory responsibility and continues to assess the appropriateness of the relationship.
Development and performance
In March 2023, Quai migrated its existing book of business from Gaudi Regulated Services, the valuation of the assets migrated was in excess of £400m and was completed without any issues.
Although there were some delays for a variety of reasons Quai signed and on-boarded new clients in line with it’s business plan, the majority of the new clients are using the Quai Pension products, some of which had gone live before the year end in October 2023 but some have gone live since.
During the year, Quai increased its technical capability by fully integrating with the Origo Pension Transfer Service, this has enabled the completion of more pension transfers therefore increasing the AUA and Transactional fee revenue.
Throughout the year, Quai has been in negotiation with a strategic tech partner, to help the business offer new solutions to the Wealth Market, these negotiations will continue into 2024.
During the financial year the company received a further investment of £270,000 from its parent company Quai Administration Services Limited in the form of Ordinary Share Capital (including share premium).
As at the year end the company held £384,086 in (immediate access) bank deposits.
QUAI INVESTMENT SERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 2 -
Key performance indicators
The key performance indicators used by the business are revenue, gross margin, cash resources and EBITDA. These are complemented by KPIs associated with AuA growth, number of investor accounts supported, and target operational performance linked to customer Service Level Agreements.
FY23 was QISL’s first year of trading and it achieved revenue of £57K during the period from onboarding its first client in March to the financial year end 31 October 2023. Costs associated with the initial set-up of new business processes resulted in the firm generating a gross profit of £16K during the year, with its EBITDA being a loss of £42K. Other KPIs have shown positive progression during the year, with AuA reaching £413m by the year end.
Other information and explanations
There are no significant events since the year end to report.
Future developments
The group continues to develop new products in the financial space and will continue to improve these products with different features and efficiency projects to ensure that its clients get best of breed services. Efficiency projects will in addition look to continue to improve the service to the underlying customer and ensure good customer outcomes in line with the Consumer Duty. IT development will add simpler integration for clients as well as providing more scalability as the company continues to grow. Further partnerships will also continue to help grow the business.
Streamlined Energy and Carbon Reporting
As an online and paperless company with a small office footprint, the company falls under the definition of a low energy user and is therefore exempt from the reporting requirement under SECR.
QUAI INVESTMENT SERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 3 -
Section 172 (1) Statement and statement of engagement with other stakeholders
The directors provide the following statement pursuant to the Companies Act 2006 (as amended by Companies (Miscellaneous Reporting) Regulations 2018) (the “Act”) to describe how they have acted in accordance with their duty under Section 172 of the Act (“Section 172”) to promote the success of the Company for the benefit of its member(s) as a whole, and in so doing, how they have had regard to those factors set out in Section 172, (1) (a) to (f) during the financial year.
Furthermore, in compliance with the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 (as amended by the Companies (Miscellaneous Reporting) Regulations 2018), the directors provide the statement which follows to describe how they have engaged with employees, and how they have had regard to employee interests and the need to foster the Company’s business relationships with suppliers, customers and others, and in each case, the effect of that regard, including on the principal decisions taken by the Company during the financial year
Section 172 requires a director to have regard to the following matters, among others, when discharging their duty;
the likely consequences of any decision in the long term;
the interests of the Company’s employees;
the need to foster the Company’s business relationships with suppliers, customers and others;
the impact of the Company’s operations on the community and the environment;
the desirability of the Company maintaining a reputation for high standards of business conduct; and
the need to act fairly as between members of the Company.
The board directors of the Company (“the Board”) is collectively responsible for managing the affairs of the Company to achieve its long-term prosperity by making important decisions, monitoring the underlying performance of the Company, as well as being a means for establishing ethical standards. Understanding the interests of key stakeholders is an important part of the Company’s strategy and helps inform the directors’ decision making throughout the year.
Board meetings are held quarterly where the directors will consider the Company’s principal activities and make decisions. Board and Ad-hoc Meetings, for the company and the group, are scheduled to provide adequate time for consideration and discussion by the directors of the interests of stakeholders, and for the directors to seek further information from management, as required. As a part of those meetings, the directors receive information in a range of different formats to assist them in discharging their responsibilities under Section 172 when making relevant decisions. This information may include, among other things, reports and presentations on financial and operational performance, business updates, budget planning and forecasts, HR matters, as well as specific areas of engagement, such as employee opinion surveys. When making decisions, the Board seeks to understand the impact on each of its stakeholders, including the likely consequences of a decision in the long term, whilst acknowledging that a decision will not necessarily be favourable for all stakeholders, as there may be competing interests between them.
The Company follows a range of policies in place to protect employees and provide a safe working environment, to ensure compliance with all regulatory requirements and adherence to the highest professional and ethical standards in dealing with customers, suppliers and colleagues. In doing so, and by balancing the interests of the Company’s stakeholders when making decisions, the Board seeks to maintain a reputation for high standards of business conduct. The directors seek to engage directly with stakeholders wherever possible on certain issues.
A E Webb
Director
23 February 2024
QUAI INVESTMENT SERVICES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 4 -
The directors present their annual report and financial statements for the year ended 31 October 2023.
Principal activities
The principal activities of the business throughout the year was the provision and administration of a range of Investment & Savings products including Pensions, Individual Savings Accounts and General Investment Accounts.
Results and dividends
The results for the year are set out on page 9.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
P J Dixon
(Resigned 27 April 2023)
A E Webb
K Stimson
(Appointed 1 May 2023)
Auditor
Price Bailey LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
A E Webb
Director
23 February 2024
QUAI INVESTMENT SERVICES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 5 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
QUAI INVESTMENT SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF QUAI INVESTMENT SERVICES LIMITED
- 6 -
Opinion
We have audited the financial statements of Quai Investment Services Limited (the 'company') for the year ended 31 October 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 October 2023 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
QUAI INVESTMENT SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF QUAI INVESTMENT SERVICES LIMITED
- 7 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We identified the laws and regulations applicable to the company through discussion with directors and our knowledge of the business.
In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments;
Assessing whether the judgements made in accounting estimates are indicative of a potential bias;
Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business;
Analytical procedures are performed as well as substantive testing to identify any potential misstatement due to fraud;
The audit procedures would also involve being aware of any such items from reviewing reports and discussions held with staff and management to obtain an understanding;
Enquiring of management as to actual and potential litigation and claims; and
Making enquires of management as to their knowledge of actual and suspected fraud.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
QUAI INVESTMENT SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF QUAI INVESTMENT SERVICES LIMITED
- 8 -
Kerry Hilliard ACA FCCA CTA
Senior Statutory Auditor
For and on behalf of Price Bailey LLP
23 February 2024
2024-02-23
Chartered Accountants
Statutory Auditor
36 Tyndall Court
Commerce Road
Lynchwood
Peterborough
PE2 6LR
QUAI INVESTMENT SERVICES LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
57,520
-
Cost of sales
(41,510)
Gross profit
16,010
-
Administrative expenses
(58,033)
(10,551)
Loss before taxation
(42,023)
(10,551)
Tax on loss
6
Loss for the financial year
(42,023)
(10,551)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
QUAI INVESTMENT SERVICES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2023
- 10 -
2023
2022
£
£
Loss for the year
(42,023)
(10,551)
Other comprehensive income
-
-
Total comprehensive income for the year
(42,023)
(10,551)
QUAI INVESTMENT SERVICES LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2023
31 October 2023
- 11 -
2023
2022
Notes
£
£
£
£
Current assets
Debtors
7
22,548
70,793
Cash at bank and in hand
533,497
102,791
556,045
173,584
Creditors: amounts falling due within one year
8
(158,618)
(4,134)
Net current assets
397,427
169,450
Capital and reserves
Called up share capital
9
4,901
2,201
Share premium account
485,100
217,800
Profit and loss reserves
(92,574)
(50,551)
Total equity
397,427
169,450
The financial statements were approved by the board of directors and authorised for issue on 23 February 2024 and are signed on its behalf by:
A E Webb
Director
Company registration number 09919243 (England and Wales)
QUAI INVESTMENT SERVICES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
- 12 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 November 2021
1,801
178,200
(40,000)
140,001
Year ended 31 October 2022:
Loss and total comprehensive income for the year
-
-
(10,551)
(10,551)
Issue of share capital
9
400
39,600
-
40,000
Balance at 31 October 2022
2,201
217,800
(50,551)
169,450
Year ended 31 October 2023:
Loss and total comprehensive income for the year
-
-
(42,023)
(42,023)
Issue of share capital
9
2,700
267,300
-
270,000
Balance at 31 October 2023
4,901
485,100
(92,574)
397,427
QUAI INVESTMENT SERVICES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
11
91,006
(7,209)
Financing activities
Proceeds from issue of shares
270,000
40,000
Repayment of connected loan
69,700
Net cash generated from financing activities
339,700
40,000
Net increase in cash and cash equivalents
430,706
32,791
Cash and cash equivalents at beginning of year
102,791
70,000
Cash and cash equivalents at end of year
533,497
102,791
QUAI INVESTMENT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 14 -
1
Accounting policies
Company information
Quai Investment Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is 16 Tesla Court, Innovation Way, Lynchwood, Peterborough, PE2 6FL.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts and settlement discounts if applicable.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Turnover in respect of set up fees is recognised in line with the individual agreement and is chargeable once the account is set up. Management fees are recognised in line with the period to which the service provision relates.
Fees collected and distributed on behalf of corporate clients are not recognised in turnover. Any fees collected on this basis, that have not been distributed at the accounting date, are reflected in cash at bank with a corresponding entry representing the distributable amount within other creditors.
1.4
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.5
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Basic financial assets and liabilities
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.
QUAI INVESTMENT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 15 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.6
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.7
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
QUAI INVESTMENT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 16 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover
2023
2022
£
£
Turnover analysed by class of business
Set up fees
6,000
-
Recurring fees
51,520
-
57,520
-
4
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
3,500
2,750
For other services
Other assurance services
4,000
3,500
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
2
2
QUAI INVESTMENT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 17 -
6
Taxation
The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Loss before taxation
(42,023)
(10,551)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
(10,506)
(2,005)
Unutilised tax losses carried forward
10,506
2,005
Taxation charge for the year
-
-
The company has cumulative unused tax losses carried forward at 31 October 2023 of £92,574 (2022: £50,551)
7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
69,700
Other debtors
9,814
Prepayments and accrued income
12,734
1,093
22,548
70,793
8
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
3,675
134
Amounts owed to group undertakings
11,458
Other creditors
135,985
Accruals and deferred income
7,500
4,000
158,618
4,134
QUAI INVESTMENT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 18 -
9
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
490,100
220,100
4,901
2,201
During the year the company allotted 270,000 Ordinary shares of 1p each for a total consideration of £270,000.
10
Ultimate controlling party
The company is a wholly owned subsidiary of Quai Administration Services Limited which is the ultimate parent undertaking, incorporated in England and Wales. The registered office of the ultimate parent undertaking is 16 Tesla Court, Innovation Way, Lynchwood, Peterborough, PE2 6FL.
The consolidated financial statements of Quai Administration Services Ltd and it's subsidiaries are available from Companies House, Crown Way, Cardiff, CF14 3UZ.
11
Cash generated from/(absorbed by) operations
2023
2022
£
£
Loss for the year after tax
(42,023)
(10,551)
Movements in working capital:
Increase in debtors
(21,455)
(792)
Increase in creditors
154,484
4,134
Cash generated from/(absorbed by) operations
91,006
(7,209)
12
Analysis of changes in net funds
1 November 2022
Cash flows
31 October 2023
£
£
£
Cash at bank and in hand
102,791
430,706
533,497
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